34.2 The trustees are responsible for the governance of the plan. The day-to-day administration of the scheme is carried out by the trustees. It is the trustees' duty to look after assets on behalf of employees who are entitled to benefit from those assets at some future date. Investment of assets of fund is key responsibility of the trustees. The trustees must review investment performance regularly.

34.3 Risk to the Plan

Following are the risk to which the plan exposes the entity :

A Actuarial Risk:

It is the risk that benefits will cost more than expected. This can arise due to one of the following reasons:

Adverse Salary Growth Experience: Salary hikes that are higher than the assumed salary escalation will result into an increase in Obligation at a rate that is higher than expected.

Variability in mortality rates: If actual mortality rates are higher than assumed mortality rate assumption then the Gratuity benefits will be paid earlier than expected. Since there is no condition of vesting on the death benefit, the acceleration of cash flow will lead to an actuarial loss or gain depending on the relative values of the assumed salary growth and discount rate. Variability in withdrawal rates: If actual withdrawal rates are higher than assumed withdrawal rate assumption then the Gratuity benefits will be paid earlier than expected. The impact of this will depend on whether the benefits are vested as at the resignation date.

B Investment Risk:

For funded plans that rely on insurers for managing the assets, the value of assets certified by the insurer may not be the fair value of instruments backing the liability. In such cases, the present value of the assets is independent of the future discount rate. This can result in wide fluctuations in the net liability or the funded status if there are significant changes in the discount rate during the inter-valuation period.

C Liquidity Risk:

Employees with high salaries and long durations or those higher in hierarchy, accumulate significant level of benefits. If some of such employees resign / retire from the company there can be strain on the cash flows.

D Market Risk:

Market risk is a collective term for risks that are related to the changes and fluctuations of the financial markets. One actuarial assumption that has a material effect is the discount rate. The discount rate reflects the time value of money. An increase in discount rate leads to decrease in Defined Benefit Obligation of the plan benefits & vice versa. This assumption depends on the yields on the corporate / government bonds and hence the valuation of liability is exposed to fluctuations in the yields as at the valuation date.

E Legislative Risk:

Legislative risk is the risk of increase in the plan liabilities or reduction in the plan assets due to change in the legislation / regulation. The government may amend the Payment of Gratuity Act thus requiring the companies to pay higher benefits to the employees. This will directly affect the present value of the Defined Benefit Obligation and the same will have to be recognized immediately in the year when any such amendment is effective.

Limitation of method used for sensitivity analysis :

Sensitivity analysis produces the results by varying a single parameter & keeping all the other parameters unchanged. Sensitivity analysis fails to focus on the interrelationship between underlying parameters. Hence, the results may vary if two or more variables are changed. There are no changes from the previous period in the methods and assumptions used in preparing the sensitivity analysis.

34.12 Details of Asset- Liability Matching Strategy

There are no minimum funding requirements for a Gratuity benefits plan in India and there is no compulsion on the part of the Company to fully or partially pre-fund the liabilities under the Plan. The trustees of the plan have outsourced the investment management of the fund to an insurance company. The insurance company in turn manages these funds as per the mandate provided to them by the trustees and the asset allocation which is within the permissible limits prescribed in the insurance regulations. Due to the restrictions in the type of investments that can be held by the fund, it may not be possible to explicitly follow an asset-liability matching strategy to manage risk actively in a conventional fund.

The Company Offsets tax assets and liabilities if and only if it has a legally enforceable right to set of current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same tax authority.

As mentioned in the note No 52 , the company has submitted restructuring plan to the consortium of lenders which is yet to be approved. Pending approval of restructuring plan, the Company has not recognised deferred tax assets during the Financial Year 2023-24.

37.3 Performance obligation

Information about the company's performance obligations are summarised below:

(a) Construction services

The performance obligation is satisfied over time as the assets is under control of customer and they simultaneously receives and consumes the benefits provided by the Company. The Company receives progressive payment towards provision of construction services.

(b) The transaction price allocated to the remaining performance obligations (unsatisfied or partially unsatisfied) as at 31 March are, as follows:

The aggregate value of performance obligations that are completely or partially unsatisfied as at March 31,2024 is Rs. 79842.46 lacs (P.Y. 131265.90 lacs) . Out of this the Company expect to recognise revenue around Rs. 79842.46 lacs (P.Y. 74270.43 lacs) in next year. Remaining performance obligation estimates are subject to change and affected by several factors including terminations , change of scope of contracts, occurrence of same is expected to be remote.

37 ^ Reconciliation of the amount of revenue recorded in Standalone statement of Profit and loss is not required as there are no adjustments to the contract price.

b Claims against the company not acknowledged as debt: other than tax matter

(i) Sarda Energy and Minerals Ltd. (Formerly known as Raipur Alloys Limited) has filed a suit for recovery of Rs.46.42 Lakhs (P.Y. Rs. 46.42 Lakhs ) against the company and its directors and officers holding them jointly and severally liable. The Company purchased steel and TMT bar from Sarda Energy and Minerals Limited, for which the latter claimed Rs 46.42 Lakhs (P.Y. Rs. 46.42 Lakhs) balance to be paid and filed Civil Suit at Civil Court, Nagpur. The company has challenged the jurisdiction of the court along with an application for stay of the Impugned Order. The Bombay High Court, Nagpur bench, through its interim order, granted a stay pending the decision of the appeal and directed the company to deposit 50% of the amount of the decree passed by the Civil Judge. The company has paid Rs. 21.20 Lakhs (P.Y. Rs. 21.20 Lakhs ). The matter is pending before the high Court, Nagpur.

(ii) A case before Workmen Compensation Commissioner , Udaipur was filed for compensation of Rs. 11.69 Lakhs (P.Y. Rs. 11.69 Lakhs ) under Employees Compensation Act, 1923. The matter is currently pending.

(iii) A case before Labour Court at Ahmedabad, was filed for compensation against the company. The labour court has directed to pay compensation of Rs. 3.63 Lakhs (P.Y. Rs. 3.63 Lakhs). the company has filled appeal before the High court of Gujarat. The matter is currently pending.

(iv) SEL has moved to Nagpur High Court for release of penalty amount Rs. 113.45 Lakhs (P.Y. Rs. 113.45 Lakhs) against the services provided at Junad Mines of WCL. The case is pending.

(v) Retention of 226 workers at UCIL Site. The Company has received 3 legal notices from Ministry of Labour and Employment, out of which one Notice is from Deputy Labour Commissioner and two Notices are from Asst. labour commissioner regarding non implementation of award by tribunal cum labour court Dhanbad. The Labour Court, dhanbad has given the order in favour of the workers. The company has filed the appeal in Jharkhand High court at Ranchi. The Matter is pending.

(vi) The Directorate of Revenue Intelligence, Lucknow issued a show cause notice to the Company on 22/11/2017, seeking reasons for not demanding Rs. 187.89 Lakhs with respect to the customs duty on importing Electronic Sensor paver Finisher , which was valued at Rs. 726.77 Lakhs by SEL. The DRI contended that the Company wrongly claimed a Nil rate of customs duty as per Notification No. 12 / 2012, pertaining to exemption from payment of custom duty. Company has filed an appeal before the Commissioner of Customs Customs Comminnsinerate - II against the above aforesaid showcause notice and Commissioner had passed order and confirmed the demand and also imposed penalty of Rs. 50.00 lakhs. Company has filed appeal before Customs, Excise & Service Tax Appellate Tribunal, Chennai. The matter is pending.

(vii) Siddharth Infraprojects Private Limited (the "Claimant") has initiated an arbitration proceeding against the Company in relation to a sub-contract agreement dated October 31, 2007 between the Claimant and Company. Pursuant to the aforesaid sub-contract agreement, Company sub contracted the work under the main contract between Company and MPRDC for rehabilitation and upgradation of package 11 of Seoni Chiraidongri Road. The Claimant has alleged that Comapny had committed breaches of the terms of the sub-contract agreement by unilaterally reducing its scope of work covered under the sub-contract agreement without the permission of the MPRDC. The Claimant has claimed an aggregate amount of Rs. 8160.00 Lakhs (P.Y. Rs. 8160.00 Lakhs ) on account of, inter alia: (i) amount not paid for the work done; (ii) overhead losses suffered by the Claimant; (iii) losses suffered on account of profit not earned at appropriate time; (iv) loss of productivity; (v) opportunity losses; (vi) compensation for interest charges paid to the bank; (vii) loss due to under utilized tools, plants and machineries. SEL has been submitted its statement of defense before the Arbitral Tribunal. The aggregate amount involved is Rs. 8160 Lakhs (P.Y. Rs. 8160.00 Lakhs ). The matter is currently pending.

^(viii) Some of the contractors and suppliers have filed cases before NCLT, Civil Courts and MSME Council claiming the payment of outstanding amount, claims and interest. The Company has made representation/submissions to the respective forums. Based on the legal advice and past out come management believes that in addition to be amount provided in the books of accounts no further amount in form of claims and interest will be payable.

(ix) The Geology and Mining Department, Government of Gujarat has raised demand of Rs. 18615.51 lakhs, including the penalty of Rs. 5413.02 lakhs in respect of royalty on minerals alleging unauthorized use of minerals by the Company in the earlier years on the ground of non submission of required documents to the Authority. Against this demand Company has deposited amount of Rs. 264.05 lakhs and filed appeal objecting the levy of royalty and is as so in the process of submitting the documents to the authority. The management believes that demand is not sustainable and hence no provision is required in respect thereof.

(x) Company has received notice of demand of Rs. 13908.87 lakhs from the Mamlatdar Alien Recovery Branch, Ahmedabad, Gujarat dated January 19, 2024 in the matter of pending / disputed payment of royalty / penalty on royalty for quarry lease no. 842, 843 and 844 situated at Tumkur in respect of State Highway (SH-3 & SH 33) from Malavalli to Pavagada project of the Company. Company has filed revision applications with the office of Joint Director, Department of Mining and Geology, Mysore pursuant to the Rule 53 of The Karnataka Minor Mineral Concession Rules, 1994 and amendments thereon from time to time. The same is under the consideration with the respective authorities. The management believes that demand is not sustainable and hence no provision is required in respect thereof.

Note- It is not practicable for the Company to estimate the timings of cash outflows, if any, in respect of the above pending resolution of the respective proceedings. The Company does not expect any reimbursements in respect of the above contingent liabilities. Future cash outflows in respect of the above are determinable only on receipt of judgments / decisions pending with various forums / authorities.

The Company does not expect any outflow of economic resources in respect of the above and therefore no provision is made in respect thereof. c Guarantees:

Company has given corporate guarantee to banks outstanding amount of which as on March 31, 2024 is Rs. 50927.66 Lakhs

(P.Y. Rs. 61439.29 Lakhs ) against the financial assistance given by the banks to subsidiary company and step down subsidiaries.

# Investments in subsidiaries classified as equity investments have been accounted at historical cost. Since these are scope out of IndAS 109 for the purposes of measurement, the same have not been disclosed in the tables above.

39.2 The Fair value of Investments in Bonds and Debentures, NSCs, Long term Loans and advances, Bank Deposits with more than 12 months maturities and earmarked balances approximate carrying value as the interest rate of the said instruments are at the prevailing market rate of interest.

The Fair value of current financial assets and current trade and other payables measured at amortised cost are considered to be the same as their carrying amount because they are of short term nature.

The carrying amount of financial assets and financial liabilities (other than borrowed funds) measured at amortised cost in the financial statements are a reasonable approximation of their fair values since the Company does not anticipate that the carrying amounts would be significantly different from the values that would eventually be received or settled.

The fair value of Borrowed Funds approximate carrying value as the interest rate of the said instruments are at the prevailing market rate of interest.

39.3 Refer Note 43 for information on financial asset pledged as security.

40.2 There are no transfer between level 1 and level 2 during the year.

40.3 The company's policy is to recognize transfers into and transfer out of fair values hierarchy levels as at the end of the reporting period.

40.4 Valuation technique and inputs used to determine fair value in level 2

The cost of investments in equity instruments approximates fair value because there is a range of possible fair value measurements and the cost represents estimate of fair value within that range.

41. Financial Risk Management

41.1 Financial Instruments Risk management objectives and Policies

The Company's principal financial liabilities comprise borrowings and trade & other payables. The main purpose of these financial liabilities is to finance the Company's operations and to support its operations. The Company's principal financial assets include Investments, trade & other receivables and cash and bank balance that derive directly from its operations.

The Company's activities expose it to market risk, credit risk and liquidity risk. In order to minimize any adverse effects on the financial performance of the company, derivative financial instruments, such as foreign currency option contracts are entered to hedge certain foreign currency exposures and interest rate swaps to hedge certain variable interest rate exposures. Derivatives are used exclusively for hedging purposes and not as trading / speculative instruments.

The Board of Directors has overall responsibility for the establishment and oversight of the Company's risk management framework. Risk management systems are reviewed periodically to reflect changes in market conditions and the Company's activities. The Board of Directors oversee compliance with the Company's risk management policies and procedures, and reviews the risk management framework.

41.2 Market Risk

The market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: currency risk, interest rate risk and other price risk. Financial instruments affected by market risk include borrowings, Investments, other receivables, trade and other payables and derivative financial instruments.

Within the various methodologies to analyse and manage risk, Company has implemented a system based on "sensitivity analysis" on symmetric basis. This tool enables the risk managers to identify the risk position of the entities. Sensitivity analysis provides an approximate quantification of the exposure in the event that certain specified parameters were to be met under a specific set of assumptions. The risk estimates provided here assume:

- a parallel shift of 100-basis points of the interest rate yield curves in all currencies. The analyses exclude the impact of movements in market variables on: the carrying values of gratuity and provisions.

- a simultaneous, parallel foreign exchange rates shift in which the INR appreciates / depreciates against all currencies by 2% The potential economic impact, due to these assumptions, is based on the occurrence of adverse / inverse market conditions and reflects estimated changes resulting from the sensitivity analysis. Actual results that are included in the Statement of profit & loss may differ materially from these estimates due to actual developments in the global financial markets.

The following assumption has been made in calculating the sensitivity analyses:

- The sensitivity of the relevant statement of profit or loss item is the effect of the assumed changes in respective market risks. This is based on the financial assets and financial liabilities held at March 31, 2024 and March 31, 2023.

41.2.1 Interest Rate Risk

Interest rate risk arises from the sensitivity of financial assets and liabilities to changes in market rates of interest. The Company seeks to mitigate such risk by entering into interest rate derivative financial instruments such as interest rate swaps. Interest rate swap agreements are used to adjust the proportion of total debt, that are subject to variable and fixed interest rates.

Under an interest rate swap agreement, the Company either agrees to pay an amount equal to a specified fixed-rate of interest times a notional principal amount, and to receive in return an amount equal to a specified variable-rate of interest times the same notional principal amount or, vice-versa, to receive a fixed-rate amount and to pay a variable-rate amount. The notional amounts of the contracts are not exchanged. No other cash payments are made unless the agreement is terminated prior to maturity, in which case the amount paid or received in settlement is established by agreement at the time of termination, and usually represents the net present value, at current rates of interest, of the remaining obligations to exchange payments under the terms of the contract.

41.3 Liquidity Risk

Liquidity risk is the risk that the Company may not be able to meet its present and future cash and collateral obligations without incurring unacceptable losses. The Company's objective is to, at all times maintain optimum levels of liquidity to meet its cash and collateral requirements. The Company closely monitors its liquidity position and deploys cash management system. It maintains adequate sources of financing including debt at an optimized cost.

The table below summarises the maturity profile of the Company's financial liabilities based on contractual undiscounted payments:

41.4 Credit Risk

Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation.

Credit risk encompasses both, the direct risk of default and the risk of deterioration of credit worthiness.

Credit risk arises primarily from financial assets such as trade and other receivables, Loans and advances, cash and cash equivalent and other balances with banks.

Credit risk on cash and cash equivalents is limited as company deposits with the banks.

The company generally gives loans and advances to its subsidiaries and employees. Hence, the management believes that the company is not exposed to any credit risk in respect of such loans and advances.

In respect of trade receivables, credit risk is being managed by the company through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the company grants credit terms in the normal course of business. All trade receivables are also reviewed and assessed for default on a regular basis. The Company has reviewed expected credit loss provision (ECL) on its trade receivables as per Ind AS provisions.

The maximum exposure to the credit risk at the reporting date is primarily from trade recievables as on March 31, 2024 Rs. 41080.71 Lakhs (as on March 31, 2023 Rs. 55271.07 Lakhs).

41.5 The Company's listed and non-listed equity securities are susceptible to market price risk arising from uncertainties about future values of the investment securities. The Company manages the equity price risk through diversification and by placing limits on individual and total equity instruments. Reports on the equity portfolio are submitted to the Company's senior management on a regular basis. The Company's Board of Directors review and approve all equity investment decisions.

At the reporting date, the exposure to:

unlisted equity in subsidiaries at cost of Rs. 2,403.16 Lakhs (P.Y. Rs. 2,403.16 Lakhs ). listed equity in subsidiaries at cost of Rs. 49,255.72 Lakhs (P.Y. Rs. 49,255.72 Lakhs)

Sensitivity analysis

As at 31 March 2024, the exposure to listed equity securities at fair value was Rs. 16954.77 Lakhs (P.Y. Rs 7,371.64 Lakhs). Changes in this exposure would not have a material effect on the profit or loss and total equity of the Company.

42. Capital Management

For the purpose of the Company's capital management, capital includes issued equity capital, share premium and all other reserves attributable to the equity holders of the Company.

The Company's objective for capital management is to maximize shareholder value and safeguard business continuity.

The Company determines the capital requirement based on annual operating plans and other strategic plans. The funding requirements are met through equity and operating cash flows generated.

45. Segment Reporting

The segment reporting is in accordance with its internal financial reports derived from SAP system which is reviewed by Chief Operating Decision Maker (CODM). Consequently, the Company has considered business as a single operating segment in accordance with Indian Accounting Standard ('Ind AS') 108 "Operating Segments".

1 Remuneration expenses includes 834.07 lakhs (P.Y. Rs. 186.17 lakhs) paid to Rohit Modi, Chief Executive officer of the company, Rs. 136.87 lakhs (P.Y. Rs. 4.81 lakhs) paid to Dwigesh Joshi, Executive Director & CFO of the company , Rs. 34.66 lakhs (P.Y. Rs. 24.51 lakhs) paid to Hardik Modi, Company Secretary and Compliance Officer.

2 The transactions with related parties are made on terms equivalent to those that prevail in arm's length transactions.

3 Terms and conditions of the balance outstanding:

Outstanding balances at the year end are unsecured and interest free except short term loan and settlement occurs in cash as per the terms of agreement

Short term loans (unsecured) given to Sadbhav Infrastructure Projects Ltd (SIPL) carries interest rate @11% p.a. (P.Y. March 31, 2021 : 11% )

The company has not provided any commitment to the related party As at March 31, 2023 except mentioned at Note No. 38B Outstanding balances towards rent and reimbursement are unsecured and will be settled as per the terms of the agreement. There is no guarantee given or received except mentioned at Note No. 54

47. The Company has outstanding loan and other receivable aggregating to of Rs. 14881.02 lakhs given to Rohtak Panipat Tollway Private Limited (RPTPL), a step-down subsidiary company which is engaged in construction, operation and maintenance of road projects under concession agreement with National Highways Authorities of India (NHAI). The net worth of RPTPL has fully eroded. RPTPL has issued the termination notice on July 27, 2021, to NHAI by exercising the criteria of "Event of Defaults" under the concession agreement.

In this regard the management of RPTPL has lodged total claims aggregating to Rs. 3,95,784.40 Lakhs relating to termination payments, O&M cost due to force majeure, Covid claim & demonetization etc. In respect of such claims, RPTPL has given notice invoking Arbitration vide letter dated March 27, 2023.

In respect of Arbitration Claim of Rs. 222057.40 lakhs for competing road, the award by Majority is passed on May 30, 2023 against the RPTPL. The RPTPL has filed the application under section 34 of the Arbitration and Conciliation Act, 1996 before the Honourable Delhi High Court. Further with respect to the balance claim of Rs. 173727.00 lakhs, the arbitration proceeding is pending before the Arbitration Tribunal.

Considering the management assessment of probability and tenability of receiving above claims from NHAI as per the terms of concession agreement, which is backed by legal opinion and pendency of the matter before Honourable Delhi high Court, the management has assessed that there is no impairment in the value of loan given to RPTPL and consequently no provision/ adjustment to the carrying value of loan and other receivable as at March 31, 2024 is considered necessary.

The statutory auditors have expressed qualified opinion on financial statements for the year ended March 31, 2024 and financial results for the quarter ended June 30, 2023, September 30, 2023 and December 31, 2023 in respect of above as regards recoverable value of Company's outstanding loan given to RPTPL.

48. The Company has investment in equity shares of Sadbhav Infrastructure Project Limited (SIPL) and loan given to SIPL, the aggregate amount of which is Rs. 79388.41 lakhs as on March 31, 2024. As per the consolidated financial statements of the SIPL and its subsidiaries, there is negative net worth of the Group of SIPL and its subsidiaries.

The management has carried out impairment assesment of these assets as on March 31, 2024 considering the projected cash flow from revenue of operating SPV's, sale of HAM assets and realization of GST claims. Based on the assessment it is concluded that receoverable amounts of these assets are more than the carrying value. Hence no impairment is required to the carrying value of investment in equity shares and loan to SIPL as on March 31,2024.

49. Some of the vendors have initiated legal proceeding against the Company for recovery of their dues. The Management contends that in these cases the amount payable in respect of goods and service availed from such vendors is adequately provided in the books of accounts. However the vendors have claimed additional amount on account of interest etc. which is contested by the Company and according to the management such claims are not tenable and does not require provision in books of accounts. Having regard to this the management believes that carrying amount of trade payables is fairly valued.

50. a. In case of Sadbhav Nainital Highway Limited (Concessionaire or SNHL), a step down subsidiary which is engaged in construction, operation and maintenance of infrastructure project under concession agreement with National Highways Authorities of India (NHAI), NHAI vide its letter dated April 17, 2023 has given In-Principal approval for harmonious substitution of concessionaire. Thereafter the SNHL has entered into definitive agreement on July 14, 2023 for substitution of the Concession to the SPV nominated by new concessionaire and also executed Endorsement Agreement dated July 14, 2023 with the approval of NHAI for harmonious substitution of the SNHL in favour of new concessionaire for implementation of the project.

In terms of harmonious substitution, all the balances outstanding, pertaining to SNHL in books of the Company have been adjusted and net amount of Rs. 4328.10 Lakhs has been transferred to statement of profit and loss and included in other expenses.

b. Company has entered in Tripartite settlement agreement with National Highways Authorities of India (NHAI) and Gawar Construction Limited (GCL) on April 18, 2023 in respect of an EPC project of Construction of NH-24 Extension 4-lane bypass starting from Behta Road and terminating at Sitapur road in the State of Uttar Pradsh for subletting the said project to GCL for balance work. In terms of this settlement, all the balances outstanding, pertaining to this project in books of the Company have been adjusted and net balance of Rs. 3074.84 Lakhs has been transferred to statement of profit and loss and included in other expenses.

c. In case of Sadbhav Kim Expressway Limited, (SKEL) one of the stepdown subsidiary of the group the project work was delayed on account of various reasons attributable to Authority (NHAI) and nationwide lockdown due to Covid-19.

SKEL requested NHAI & Lenders to allow harmonious substitution in terms of the NHAI Policy circular through a nominated company namely — M/S Gawar Construction Limited (Nominated Company) and the Lenders' Representative gave its consent for allowing harmonious substitution of the SKEL.

NHAI vide its letter dt November 03, 2022, conveyed its "InPrinciple" approval for harmonious substitution of SKEL with a new special purpose vehicle to be incorporated by the Nominated Company subject to certain conditions.

Subsequently SKEL has entered into definitive agreement on October 17, 2023 for substitution of the concession with the new SPV nominated by new concessionaire and also executed Endorsement Agreement dated January 23, 2024 for harmonious substitution of SKEL in favour of new concessionaire for implementation of the project.

In terms of these agreements the project and project assets as defined in the Concession Agreement along with the relevant rights and obligations of the SKEL are transferred to the new concessionaire. Consequently, all the balances related to SKEL in the book of the company have been adjusted and provision for impairment in value of contract assets of Rs. 570.92 lakhs are made and included in other expenses.

d. Other expenses for the year ended March 31, 2024 includes (i) Rs. 6672.20 lakhs being amount written off in respects of contract assets being considered as irrecoverable and (ii) allowance for credit loss of Rs. 3362.49 lakhs for the year ended March 31, 2024.

e. Company reviews balances outstanding in the accounts of trade receivable, advance to vendors and security & other deposits receivable and payable that have been outstanding for an extended period and are unlikely to be received and paid. The Company applies the prudence concept and have written off/provided as expenses amounting to Rs. 10694.88 lakhs during the year ended March 31, 2024.

51. Contract Assets and other non current financial assets include Rs. 50377.05 lakhs, outstanding as at March 31, 2024 which represents various claims raised on the Clients based on the terms and conditions implicit in the Engineering, Procurement & Construction Contracts/Mining Contract in respect of closed / suspended/under construction projects. These claims are mainly in respect of cost over run arising due to suspension of works, client caused delays, changes in the scope of work, deviation in design and other factors for which Company is at various stages of negotiation/ discussion with the clients or under Arbitration/ litigation. On the basis of the contractual tenability, progress of negotiations/ discussions/ arbitration/ litigations/ legal opinions, the Management is of the view that these receivables are recoverable.

52. The Company finds difficulties in meeting payment obligations to suppliers and statutory dues in the normal course of business. There are also delays/defaults in repayment of dues to lenders. The consortium of lenders of the Company, except one lender, had signed an Inter Creditor Agreement on December 26, 2022, due to defaults in the repayment of dues, leading to the Company's account being classified as Non-Performing Assets by majority of lenders. Further one of the lenders has filed application to NCLT to initiate insolvency proceedings section 7 of the Insolvency and Bankruptcy Code, 2016. These factors raise concern about the Company's ability to continue as going concern.

In Connection with the above, the management had submitted Restructuring Plan to the consortium of lenders. The Restructuring Plan envisages monetization of HAM and other Assets, infusion of funds from the promoters, cash flows from Gadag Project, receipt of claim amounts from projects under arbitration and dispute settlement, receivables, and refinance / stake sale of operational projects as well as of restructuring of lender dues.

The Management as part of business strategy have successfully completed monetization of HAM projects, which has resulted into reduction of group debt exposure, reduction of the vendor liabilities to significant level and also reduction in Non-Funded Exposures of the Consortium Member banks.

In the Ongoing Restructuring Plan, the Company has submitted Techno Economic Viability report to the Consortium of Lenders which states that Company would be technically and financially viable as per the Proposed Restructuring Plan. The Consortium Lenders have now appointed Credit Rating Agencies in this regard.

Considering the expected approval from lenders of the proposed Resolution Plan, realization of receivables, proceeds from monetization of assets, infusion of funds from promoters and future business potential in the infrastructure sector, the management believes that Company will be able to ramp up its operations and generate incremental cash-flows.

1 In the previous year principal repayment of the long term borrowings include prepayment of the borrowings which has been repaid out of the repayment of loan from the related parties. This has resulted in to decrese in last year ratio.

2 The Company has written off from the contract assets resulting in to decrease in the value of average trade receivable hence the Trade Receivable turnover ratio increased.

3 Material consumption has decreased during the year from the last year hence ratio decreased.

4 The Company's net loss was higher in the previous year due to trade and other receivable written off compared to net loss in the current year resulting into positive ratio.

55. The Company does not hold any benami property as defined under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder. No proceeding has been initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

56. The consortium of lenders of the Company, except one lender, had signed an Inter Creditor Agreement on December 26, 2022, due to defaults in the repayment of dues, leading to the Company's account being classified as Non-Performing Assets by majority of lenders. In Connection with the above, the management had submitted Restructuring Plan to the consortium of lenders, in liew of above, Company has not submitted the Quarterly information system (QIS) statements.

57. As on March 31, 2024 there is no unutilised amounts in respect of any issue of securities and long term borrowings from banks and financial institutions. The borrowed funds have been utilised for the specific purpose for which the funds were raised.

58. The Company does not have any transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 ( Such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

59. The Company has not traded or invested in crypto currency or virtual currency during the financial year.

60. The Company does not have any charges or satisfaction, which is yet to be registered with ROC beyond the statutory period except in case of two lenders where charge satisfaction yet to be registered with ROC due to non receipt of no dues certificate.

61. The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

62. The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries

63. During the reporting period, Company had no transactions and no outstanding balances with the company which has been struck off the register as per the provisions of the Companies Act 2013.

64. The Company is in compliance with the number of layers prescribed under clause (87) of section 2 of the Companies Act read with the Companies ( Restriction on number of Layers) Rules, 2017.

65. The Company is not declared as wilful defaulter by any Bank or Financial Institution or Other lenders.

66. Figures relating to the previous periods/year have been regrouped / rearranged, wherever necessary, to make them comparable with those of the current periods/year.

67. The Company uses an accounting software equipped with an audit trail (edit log) feature, which has been consistently operational throughout the year for all relevant transactions recorded within the system. However, this audit trail feature does not extend to certain direct modifications made at the database level. To address this, the Company has implemented stringent controls over such modifications, ensuring no instances of tampering or unauthorized changes to the audit trail feature have occurred in relation to the accounting software.